FOCUS - a newsletter from globeadvisor.com
11 Nov 2003
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SPECIAL REPORT: Easy Fixes to
Timing Couldn't Be Better For Some Easy Fixes in Fund Industry
The scandal over late trading in the US mutual fund industry has already cost
some top money managers their jobs. Here, The Globe and Mail's Streetwise
Andrew Willis describes the mechanics behind late trading, why it
represents a ripoff to the small investor, and how regulators can prevent the
same abuses from occurring here.
Fund Information Flow is the Real Problem
The fund industry abuses currently under investigation south of the
border involve giving brokers, hedge funds, and other traders preferential
Matthew Ingram reports that these abuses have their basis in unfair
information flows. Here's the case for handing more control to Main Street,
rather than letting Wall Street — and Bay Street — have the monopoly.
U.S. Fund Scandal Prompts OSC Move
Bigger Fund Ripoffs Exist Than Illegal Trading
Could it be that some of the things mutual fund companies do
perfectly legally every day are just as much a scandal as the illegal late
trading they're being knocked for? Globe and Mail Vox columnist Derek DeCloet
thinks so. Read and judge for yourself whether his complaint — that fundcos
charge unreasonably high fees for the returns they garner — is fair.
READ MORE ON MUTUAL FUNDS:
Mutual fund inflows seen on rise
HEDGE FUNDS REPORT: The
Reality on Risk; An Expert Offering
It's Time For Hedge Funds To Grow Up
Hedge fund managers,
Rob Carrick writes, are always eager to say they've been given a
bad rap on risk. Fact is: "Hedge funds are sophisticated investment
vehicles that can work to mitigate risk in some cases, or blow it out of all
proportion in others."
What are they all about, and how can advisors assess whether a given hedge
fund is a suitable component for client portfolios?
Stable Of Money Managers Offers Recipe For Retail Hedge Fund
Mississauga-based Pro-Hedge Funds Inc. has recently set up an offering
based on pulling together a "dream team" of proven money managers. Read the
names, and learn how the firm back-tested its strategic approach.
OVERALL MARKET OUTLOOK:
Corporate Earnings, Index Outlook
U.S. Profits Seen Taking Lead
A recent BMO Nesbitt Burns report based on earning forecasts tracking
says the profit growth of U.S. corporations should begin to outpace Canadian
companies beginning in the fourth quarter and continuing in 2004. Advisors
who have clients invested in US Equity funds will want to read the full story.
Manager Sees Little Further Gain for Index
Read why a senior equities analyst from Montreal's Optimum Asset Management
Inc. says Canada's benchmark S&P/TSX Composite index has already realized
most, if not all, of the gains it will see this year.
FIXED INCOME UPDATE: Squeezing
Out Higher Yields; Rate Speculation; Gut Feel
Fixed Returns Can Be Juicier
One approach for clients who want to "juice up" the returns they're
getting from fixed-income investments involves moving from government bonds
into corporate issues. This detailed article explains how to exploit the
risk-reward tradeoff to improve yields.
Traders Betting Central Bank Won't Cut Interest Rates
Recent bond trading activity suggests the pressure on Canada's central
bank to cut rates next month has eased. Traders are betting on a global
economic recovery and a worldwide shift towards tighter monetary policy.
Trust Your Gut
Think it sounds irrational to say "act before you think" or "trust
your gut"? While logical analysis remains a must, your instincts can also
provide valuable help in decision-making. Read these five thought-provoking
rules for tapping into your instinctive abilities.